Global Communications

Paper Summary:

The paper describes how Global Communications is in a hyper-competitive, primarily undifferentiated, globalized industry and to stay competitive, they must act aggressively. The paper illustrates how balancing the needs of their shareholders and their employees, while continuing to improve competitiveness and profitability, is difficult. However, the paper shows that by implementing strategies that involve outsourcing, employee morale support and new technology pursuits, Global Communications can improve their market positioning and profitability.

From the Paper:

"Global Communications is concerned about operating profits and the strain placed on the company as a result of increasing levels of competition. In response to the challenges facing Global Communication, senior management has developed an aggressive plan. The first part of this plan involves offering new services targeted toward small businesses and consumer accounts. The second part of Global Communications' new business plan is more controversial. It involves specific cost cutting measures intended to improve company profitability. Part of this cost cutting plan involves moving some of the company's technical call centers to India and Ireland where labor costs are significantly lower. Situation Background: Global Communication is in serious trouble. The company's stock was trading at $28 per share three years ago and is now trading at around $11 suggesting that investor confidence in the telecommunications industry is waning."

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